CFD PROFILE CARBON EMISSIONS
Spread: 14 basis points plus underlying market spread
Margin Requirement: 10 per cent
Trading Hours: 7am – 5pm
Currency: Euros
(information from GFT)
This contract is based on the ICE European Climate Exchange near-month futures contract. One CFD with GFT is equal to 100 metric tonnes of carbon emissions.
The market is liquid enough for providers to offer CFDs on carbon emissions, but it does not have the same depth as the FTSE 100. This means that there are likely to be more aggressive moves in the contract – ideal for traders with a short-term focus wanting a play on industrial growth, particularly in developing countries.